III or CLGX: Which Is the Better Value Stock Right Now?

III

Investors interested in Consulting Services stocks are likely familiar with Information Services Group (III - Free Report) and CoreLogic . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Information Services Group has a Zacks Rank of #2 (Buy), while CoreLogic has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that III likely has seen a stronger improvement to its earnings outlook than CLGX has recently. But this is only part of the picture for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

III currently has a forward P/E ratio of 13.18, while CLGX has a forward P/E of 20.92. We also note that III has a PEG ratio of 0.94. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CLGX currently has a PEG ratio of 1.74.

Another notable valuation metric for III is its P/B ratio of 1.43. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CLGX has a P/B of 5.38.

Based on these metrics and many more, III holds a Value grade of A, while CLGX has a Value grade of C.

III is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that III is likely the superior value option right now.

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